We are having an interesting time of things in regards to life plans and housing at the moment.
We have a house (3 bedrooms plus office) 1 bathroom and extra toilet.. pretty modest. Has views over harbor and top half of mount and also part of golf course, plus biggish yard with fruit trees, trampoline, tree house etc. All very middle class suburban, but in a nice area 2 minutes drive to CBD.
We also own a rental in same neighborhood.
We also own a rural residential piece of land inside the city limits, about 8000 sqm. Nice spot, very nice area got a few hundred sqm of native bush etc enough room for pool, tennis court, pony/sheep etc.
We did plan on living there....
We are currently building a house on it, about 250 sqm, so not huge McMansion, but definitely nicer than our current house.
But now.. we are just going to build and sell. We basically had a choice of living in a very expensive house... or not.
We have chosen to sell it clear all our mortgages and have a large wedge of cash in the bank, and keep our rental. But we will still be living in quite a modest house. I think it is an age thing. I just really like the idea of not having a mortgage, having money in the bank and a rental giving us goods money every week.... alot more than owning a super flash house. I drive a clapped out Kia and the wife drives a little Suzuki Ario.. we probably wont change cars either.
Basically i think we really look like we are struggling, and to be honest it is weird when I pick my kids up form school in my crappy old car and are surrounded by massive flash SUV's, I do feel like i m pretty poor! Makes no logical sense.
Now I am just rambling, but I do find the whole finances vs images social dynamics massively fascinating. Most people do not not how well off or poor they really are. we have some friends who are on a continual mission to be in the best house they can afford, always totally leveraged, I suspect they will likely do quite well .. as long as house prices don't crash.